Markets react positively after US-China reach tariff agreement

This is an important de-escalation move that helps dispel concerns about a trade war between the world's two largest economies and could have a strong impact on the global economy.

Wall Street futures jumped. S&P 500 futures rose 2.6% and Nasdaq 100 futures rose 3.8%. U.S. tech stocks were on track for their best day in more than a month, while Hong Kong tech stocks rose more than 6%.

On the European stock market, Germany's DAX stock index opened the trading session on May 12 up 1.5% to a record high, the continent's STOXX 600 index rose 1.1% while Italy's FTSE MIB index rose more than 2%, to its highest level since 2007.

In Asia, regional stock markets rose in consensus. In Tokyo, Japan, the Nikkei 225 index rose 0.4% to 37,644.26 points. In China, Hong Kong's Hang Seng index rose 3% to 23,549.46 points. The Shanghai Composite index rose 0.8% to 3,369.24 points.

Stocks in Sydney, Seoul, Taipei and Wellington all rose. Mumbai jumped more than 3% after India and Pakistan reached a ceasefire agreement over the weekend. Pakistan's stock market even rose more than 9%.

The dollar index against a basket of major currencies also rose 0.9%, rebounding from a three-year low hit last month. The Japanese yen fell 1.5% to 147.08 yen per dollar. The euro fell 1.1% to 1.1131 dollars per euro.

In the gold market, the precious metal fell 3% to its lowest level in more than a week after news of the US and China reaching an agreement. At around 3:12 p.m. Vietnam time, the spot gold price was trading at only $3,224.34 an ounce, the lowest since the beginning of this month. US gold futures also fell 3.5% to $3,228.10 an ounce.

Jigar Trivedi, senior commodities analyst at Reliance Securities, said the rising dollar index is weighing on gold. In the short term, the precious metal could continue its downward trend as the dollar strengthens amid reduced geopolitical risks. He predicted that gold could fall to $3,200 an ounce in the near term.

However, in other metals markets, spot silver prices rose 0.7% to $32.94 an ounce, platinum rose 0.5% to $999.64 an ounce, and palladium rose 0.5% to $980.69 an ounce.

The high-level trade talks between the US and China ended on a positive note after two days of negotiations, with both sides agreeing to reduce reciprocal tariffs on each other’s goods for 90 days. According to the plan, the two sides will take action before May 14.

Source: https://hanoimoi.vn/thi-truong-phan-ung-tich-cuc-sau-khi-my-trung-dat-thoa-thuan-thue-quan-702024.html